Overview: The silver market initially tried to rally on Monday buy got absolutely crushed after the announcement that they had a vaccine with a 90% efficiency rate. Silver is set towards its low side for the short term and making the negative volatility in the market. Due to yesterday’s steep sell-off or blood bath, we have seen a downfall in precious metal including gold. Well, the bears got aggressive and followed by a strong selloff.
Technical Analysis: The silver price is closely followed by all traders due to its low volatility and potential .silver have been in a consolidative state since the end of September. Silver is making the lower sides in the market. The pair is pressuring the downward market and descending channel pattern in the late month of august. The technical outlook is slightly tilted to the downside of a bearish ‘Death cross’.
The market is also favoring the bears and advises the sellers to sit on the sell-side. On 9 September in the hourly chart, the market is making bearish candlesticks three black crows pattern that predicts the reversal of the uptrend. On the 4 hourly charts is the market is traveling towards the downward side of the market. The daily chart price is making the flag pattern which indicates trend reversals and breakout after a period of consolidation. The pair is moving towards the south direction in the market. The bears are staying in the market for the short term and after the strong breakout, the market can able to rise. The major EMA line is below the SMA lines and forcing the market go follow the trend
Current status: The current range of the market is 24.260 the support is 24.286 followed by 24.206 and resistance is 24.366 and 24.446.
Trade idea: Based on the above discussion we can give sell at 24.207, the target is 23.00, 22.96 and stop loss is 25.38
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